Category: Featured

  • Juul Settles North Carolina Vaping Lawsuit

    Juul Settles North Carolina Vaping Lawsuit

    Photo: steheap

    North Carolina has settled its lawsuit with Juul Labs for $40 million, reports The New York Times. The lawsuit is the first decision in of a series of lawsuits brought by states that claimed the company’s marketing practices fueled widespread addiction among young people to its e-cigarettes. The money will fund programs to help people quit e-cigarettes, prevent e-cigarette addiction and research e-cigarettes.

    “This settlement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers,” said Juul spokesman Joshua Raffel in a statement.

    The settlement was announced on June 28 by North Carolina Attorney General Josh Stein, who said that Juul agreed to avoid marketing that appeals to those under the age of 21. The company will curtail its use of “most social media advertising, influencer advertising, outdoor advertising near schools and sponsoring sporting events and concerts,” Stein said.

    North Carolina sued Juul Labs in May 2019, becoming the first state in the U.S. to file suit against the e-cigarette manufacturer. In the agreement, the company denies any wrongdoing or liability. Juul Labs will ensure its products are sold behind counters, the attorney general said. Juul Labs will also use third-party age verification systems for online sales. The order also commits Juul to sending teenage “mystery shoppers” to 1,000 stores each year to check whether they are selling to minors.

    The settlement also bars the company from using models under age 35 in advertisements and states that no advertisements should be posted near schools. “For years Juul targeted young people, including teens, with highly addictive e-cigarettes,” said Stein in a statement. “It lit the spark and fanned the flames of a vaping epidemic among our children—one that you can see in any high school in North Carolina.”

    Thirteen states, including California, Massachusetts and New York, as well as the District of Columbia have filed similar lawsuits. The central claim in each case is that Juul knew, or should have known, that it was hooking teenagers on pods that contained high levels of nicotine.

    “This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs and keeping its nicotine from poisoning and addicting their brains. I’m incredibly proud of my team for their hard work on behalf of North Carolina families,” Stein said. “We’re not done—we still have to turn the tide on a teen vaping epidemic that was borne of Juul’s greed. As your attorney general, I’ll keep fighting to prevent another generation of young people from becoming addicted to nicotine.”

  • Japan: Cigarette Sales Drop Below 100 Billion

    Japan: Cigarette Sales Drop Below 100 Billion

    Photo: Colleen WIlliams

    Cigarette sales in Japan fell below 100 billion in 2020 for the first time in decades as more smokers embraced tobacco-heating products, reports Japan Today, citing industry data.

    In the year that ended in March, cigarette sales plunged by a record 16.3 percent from the year before to 98.8 billion sticks, the lowest since fiscal 1990 when comparable data became available, according to the Tobacco Institute of Japan.

    The figure represents more than a 70 percent drop from fiscal 1996 when sales peaked at 348.3 billion cigarettes.

    In 2019, 27.1 percent of men and 7.6 percent of women regularly smoked, down from 29 percent and 8.1 percent, respectively, from the year before, the survey showed.

    Smokers in Japan purchased 41.3 billion heated-tobacco products in 2020, equivalent to some 40 percent of rolled cigarette sales.

    Industry officials attributed the growing popularity of tobacco-heating products in part to the Covid-19 pandemic. While coronavirus lockdowns created more opportunities to smoke at home, many teleworkers opted for tobacco-heating products to avoid releasing smoke inside their homes or on balconies.

    In April, Japan banned smoking in government buildings, eateries, hotel lobbies and workplaces.

    In May, Philip Morris International CEO Jacek Olczak said the company expects to stop selling combustible cigarettes in Japan within the next 10 years to 15 years.  

    Japan Tobacco, which saw falls in revenues and profits in 2020 due to slumping sales of combustible products, hopes to restore its performance by launching a new heated-cigarette product this summer.

  • Bhutan Moves to Legalize Tobacco

    Bhutan Moves to Legalize Tobacco

    Photo: s_jakkarin

    The National Assembly of Bhutan has taken a first step toward lifting the country’s ban on tobacco products, reports East Mojo.

    Passed on June 25, the Tobacco Control (Amendment) Bill 2021 and Tax Bill of Bhutan 2021 would legalize the selling, buying, possession, distribution and transportation of tobacco and tobacco products in the country. Manufacturing tobacco would remain illegal, however.

    By legalizing tobacco, legislators hope to help check the spread of Covid-19, which they believe has been worsened by the continuous smuggling of tobacco products through Bhutan’s porous southern border.

    The act also mandates that the government provide counselling and treatment to facilitate tobacco cessation. Premised on the physical health and well-being of the Bhutanese people, the legislation recognizes the harmful effects of tobacco consumption and exposure to tobacco smoke on both spiritual and social health.

    The bill will now be referred to the National Council for endorsement.

    Bhutan banned tobacco sales in December 2004. Tobacco Reporter was the first to report from the world’s only officially smoke-free nation.

  • Tobacco Tax Hike Clears German Upper House

    Tobacco Tax Hike Clears German Upper House

    Photo: Sebastian H

    Germany’s upper house of parliament, the Bundesrat, on June 25 approved tobacco tax reform legislation, which includes tax hikes on both traditional cigarettes and next-generation products, reports the Berliner Zeitung. 

    In 2022 and 2023, the tobacco tax on a pack of 20 combustible cigarettes will increase by an average of €0.10 ($0.12) each year; in 2025 and 2026, it will go up by another €0.15 each year. A pack of branded cigarettes currently costs around €7 in Germany, which last raised its tobacco taxes in 2015.

    Manufacturers are likely to pass the higher taxes on to consumers.

    Around one in four German adults regularly smokes cigarettes. Health activists had called for significantly higher tobacco tax hikes. The German Cancer Research Center, for example, said the rate would have to increase by at least 10 percent to make a significant dent in smoking. The increases approved by the Bundesrat amount to 3 percent and 4 percent, respectively.

    Tobacco taxes earned Germany €14.7 billion in 2020. Without a tax increase, the tax authorities had forecast tobacco tax revenues of €14.1 billion for 2022; with the rules that have now been adopted, they anticipate almost €16 billion.

    The tax increase disproportionally targets e-cigarettes and the consumables for tobacco-heating devices—a feature that has attracted considerable criticism from the vapor industry and tobacco harm reduction advocates, who believe such products should be taxed comparatively lightly because they are believed to be less harmful than combustible cigarettes.

    SPD politician Michael Schrodi rejected such criticism by pointing out that novel tobacco products have been taxed at low rates to date. “Now they are being taxed appropriately because they too are a health hazard and are potentially addictive,” he said.

  • RYO Tobacco Smuggling Network Dismantled

    RYO Tobacco Smuggling Network Dismantled

    Law enforcement organizations in Spain and Portugal have dismantled an organized crime group involved in large-scale tobacco smuggling, according to Europol.

    The criminals would illegally import from Spain to Portugal large quantities of tobacco leaf and strips, destined to produce both cigarettes and tobacco for roll-your-own cigarettes, which were subsequently distributed onto the Portuguese black market.

    On June 24, police arrested eight Spanish and Portuguese individuals and seized 11 tons of tobacco leaf and fine-cut tobacco alongside 90,000 illegal cigarettes and 186,500 cigarette filters. The amount of tobacco seized is enough to produce some 11 million cigarettes worth €2.7 million ($3.22 million) in Portugal.

    The criminals were managing the import of the tobacco via several companies established with the sole purpose of committing excise fraud. Cutting and processing facilities had been set up in Spain, from which the tobacco was shipped to Portugal where it was stored in different warehouses until it was distributed further.

    The revenue loss generated by these tobacco products illegally imported from Spain to Portugal is estimated at more than €2 million.

    Europol brought together the national investigators on both sides who have since been working closely together to establish a joint strategy to bring down this network. Since then, Europol has provided continuous intelligence development and analysis to support the field investigators.

  • Kretek Int’l Announces Leadership Promotions

    Kretek Int’l Announces Leadership Promotions

    Photo: tomertu

    Kretek International has announced a series of senior management promotions.

    Jason Carignan, currently chief marketing officer of Kretek, will become president of Phillips & King International and TMG International. Carignan’s new role will involve the strategic expansion and digital transformation of the Phillips & King and TMG businesses to serve the evolving needs of independent retailers across the country. Sergio Montolfo, executive vice president and general manager, will report to Carignan and will continue in his role overseeing sales and operations of the business.

    Carignan joined the company in 2014 and is credited with the strong growth of Kretek’s many proprietary brands and subsidiaries. Most recently, Carignan served as president of Dryft Sciences, a Kretek subsidiary, where he led the start-up, manufacture and commercialization of Dryft nicotine pouches until the company’s sale to Modoral Brands in November 2020.

    “I have tremendous confidence in Jason Carignan, who has championed many of the company’s key successes over the years,” says Kretek President Sean Cassar. “With Jason at the helm of Phillips & King, we’re ready to rapidly advance our business modernization efforts in order to capitalize on the many growth opportunities ahead and to achieve our corporate objectives.”

    Additionally, Albert Jose, currently director of Kretek marketing, has been promoted to senior vice president of sales and marketing for Kretek. Jose joined Kretek in 2012, when he began as a brand manager, and over the past nine years has led marketing and brand management efforts for many of the company’s most important products, including Djarum and Cuban Rounds. In moving into his new role, Jose’s duties will expand to include oversight for all of Kretek’s dedicated sales channels and their related marketing programs and product development efforts.

    “The Djarum and Cuban Rounds product portfolios represent significant growth opportunities for the company,” says Cassar. “We look forward to Albert Jose and the entire sales and marketing team working together to expand distribution and build on the strong sales and margin growth our company has achieved over the years.”

    Both Jason Carignan’s and Albert Jose’s roles will take effect immediately.

  • Parkside Boosts Malaysian Operations

    Parkside Boosts Malaysian Operations

    Paula Birch (Photo: Parkside)

    Specialist packaging solutions provider Parkside has announced it has placed significant investment in the latest flexible packaging production technology at its Malaysian headquarters.

    Demand for hygienic, safe and convenient packaging is growing in the region, and as a result, Parkside has been investing in its production of high barrier and sustainable flexible packaging solutions at the facility. With a 10-color print press, three coater/laminators, three slitting lines and flexo plate making facilitates alongside a new business development strategy, the company is now targeting more categories within the Asia-Pacific food and drink sector.

    “After the challenges of 2020, it’s clear that the way we manufacture, process and supply products has been changed for good,” said Global Sales Director Paula Birch, who was recently appointed general manager of Parkside Asia. “As consumer behavior and demands have evolved in the region, the supply chain has adapted. How closely brands can reflect the needs of shoppers—and how effectively they can use this to shape their operations—is set to prove a real differentiator as they adapt their strategies, and we are here to help!

    “We have a fantastic best-in-class facility in Kuala Lumpur able to produce a wide range of flexible packaging solutions from lidding films and bags through to next-generation compostable and recyclable sustainable pack designs. 

    “We are widely known in Asia for our tobacco products, but we are so much more than that. We have the perfect product portfolio to address these emerging consumer trends, and it is vital moving forward [that] we ensure brands are aware of our capabilities.”

  • Canada: Flavor Ban Could Boost Smoking

    Canada: Flavor Ban Could Boost Smoking

    Photo: jedsadabodin

    Health Canada has made a “startling admission” that its recent policy to ban the sale of flavored vapor products could contribute to a rise in cigarette consumption, reports Filter, a publication owned and operated by The Influence Foundation, a nonprofit organization that advocates for rational and compassionate approaches to drug use, drug policy and human rights.

    Into its regulatory impact analysis statement on the intended flavor ban, Health Canada acknowledges that its legislation could lead to an increase in smoking, according to Filter.

    “It is anticipated that some dual users who currently use flavored vaping products would not substitute their purchases with tobacco[-flavored] and mint/menthol-flavored vaping products. They would choose to purchase more cigarettes,” the statement reads.

    “The statement is very direct. It’s basically saying, ‘We’re Health Canada, and we’re going to do something that kills Canadians,’” said David Sweanor, an industry expert and chair of the Advisory Board for the Centre for Health, Law, Policy and Ethics at the University of Ottawa.

    “The statement is very direct. It’s basically saying, ‘We’re Health Canada, and we’re going to do something that kills Canadians.'”

    David Sweanor, chair of the Advisory Board for the Centre for Health, Law, Policy and Ethics at the University of Ottawa

    Matt Culley, a board member of the U.S.-based CASAA, a consumer advocacy nonprofit that promotes smoke-free alternatives to combustible tobacco, said, “The fact that a government can brazenly admit their policy will lead to more smoking and death is wild. It really goes to show how demonized vaping remains.”

    The policy appears to be at odds with Canada’s intention to reduce its smoking rate to 5 percent by 2030.

    “Our policies have not aligned with the country’s goals,” Darryl Tempest, the executive director and chief advocate of the Canadian Vaping Association (CVA), told Filter. “It is not a public policy that relates to adults or harm reduction or small businesses.”

    The country amended its tobacco laws to include vaping products in 2018, and some Canadian provinces have already enacted their own flavor bans.

  • Pfizer Pauses Chantix Over Nitrosamines

    Pfizer Pauses Chantix Over Nitrosamines

    Photo: Antwon McMullen

    Pfizer on June 24 announced that it is pausing distribution of its anti-smoking treatment, Chantix, after finding elevated levels of cancer-causing agents called nitrosamines in the pills, reports Reuters. Pfizer is recalling a number of lots of the anti-smoking drug. Pfizer said the pause in distribution is out of abundance of caution and pending further testing.

    The U.S. Food and Drug Administration has in the past reached out to companies whose drugs had nitrosamines above accepted levels. Global revenue from Chantix fell 17 percent to $919 million in 2020 as Covid-19 curbs hampered demand and Pfizer lost patent protection in the U.S. last November.

    “The benefits of Chantix outweigh the very low potential risks, if any, posed by nitrosamine exposure from varenicline on top of other common sources over a lifetime,” said Pfizer spokesperson Steven Danehy.

  • Fewer Smokers but More Nicotine Users

    Fewer Smokers but More Nicotine Users

    Photo: sezerozger

    While the number of young Danes smoking cigarettes has fallen, the number of young people who use at least one tobacco or nicotine-related product has increased since last year from 27 percent to 28.6 percent, reports the Copenhagen Post, citing a new report released by the National Institute of Public Health.

    Researcher Lotus Sofie Bast noted that the April 1, 2020, cigarette excise tax increase drove the nicotine consumption habits of young people from the more expensive cigarettes to less expensive vapor products. The report will be an annual examination of young people’s tobacco and nicotine habits.

    Researchers hope to monitor the effect of newer measures like higher cigarette prices, standardized tobacco packaging and products hidden behind the counter in the coming years.